The National Action Plan on Climate Change (NAPCC) announced in June 2008 by the Govt. of India proposes increasing the share of renewable energy in the total energy mix to 15% by 2020. In order to achieve this, NAPCC recommends pegging the minimum share of renewable energy in the national grid at 5%, starting from 2009-10, to be increased by 1% per annum in the following years so as to reach 15% by 2020. This requires a quantum jump in renewable energy generation across the country.
People like Mr. Kameswara Rao, Leader- Energy and Utilities, PwC India said that resource consolidation and reallocation is taking place in the renewable energy space in India with deals involving wind, hydro and biomass. He further added, “We are at a critical point now and the course of renewable regulations, especially with regard to mandatory procurement obligations and activation of the REC market will significantly determine market activity.”
Renewable Energy is at an interesting stage in India where the question is now on how best we can tap the potential and convert the opportunity available into actual projects being developed and scaled on the ground. This has been encouraged and supported by the planning commission that has said that the Twelfth Five Year Plan will give energy efficiency and renewable energy special emphasis. The Plan will focus on specific initiatives needed to put our development on a path consistent with low carbon growth. Energy efficiency and exploitation of renewable energy sources will receive a special emphasis.
Investors have also shown a lot of interest in this sector and according to data from Venture Intelligence, $1.5 billion has been invested by venture capital and private equity firms into clean energy developers from 2008 to date. Indian Cleantech sector has witnessed an investment of about $465 million from 2008.
According to VC speakers on the Cleantech panel at Venture Intelligence’s recent APEX conference, “Cleantech in India, still remains at a nascent stage where venture capital funds traditionally have not been able to find investable deals and the models for cleantech investments in India still need to be figured out. ”
“Clean Energy has witnessed steady investments into IPP’s and 2010 was a record year with half a billion dollars invested. The appetite for investments into Clean Energy is still high, but companies have not been able to scale as much as there is capital available. Clean Energy still continues to be among the top three areas of interest for investments when we spoke to a number of funds and their limited partners,”said Arun Natarajan, CEO of Venture Intelligence.
The cleantech panel at the Sankalp Forum intends to discuss and deliberate on “Potential to Production of Renewable Energy in India.”
The panel has some of the best known from the industry including Pradeep Bhargava, MD, Cummins Generator Technologies , Rupa Hattangidi, Vice President, Nereus Capital, Nakul Zaveri, Investment Manager, Global Environment Fund, Alan Rosling, Chairman, Kiran Energy Solar Power and R Chandrasekhar (Chandra), CEO, IT Power.
It is indeed an excellent opportunity for all the stakeholders in the clean energy sector to meet and interact on a common platform as the we come to gather to address the “Potential to Production of Renewable Energy in India.”